Policies 
    
    Feb 27, 2024  
Policies

2013 Property, Plant & Equipment Policy


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It shall be the policy of the Bay de Noc Community College Board of Trustees to maintain appropriate records of control and accountability for all of its capital assets, which are considered to be property, plant and equipment.  It shall also be the policy of the Board of Trustees to comply with current accounting standards in regard to the depreciation of property, plant and equipment.

Procedure:


2013.1


Capital assets, including library collections are reported in the statement of financial position at cost, or at fair market value as of the date of acquisition if received by gift or at a nominal value if fair value cannot be determined. The costs, less estimated residual values of capital assets with limited lives, are amortized in a rational and systematic manner over their useful lives. The College has chosen to use the straight-line method of amortization, which will be shown as an expense in the Statement of Operations.  The asset classes and estimated useful life of the capital assets will be as follows:

 

Class Name

Examples

Estimated Life

Furniture and Fixtures

Tables

Chairs

Cabinets

Desks

Work Benches Bookshelves

Kitchen Appliances

 

10 years

Heavy Equipment

Caterpillars

Tractors

Dump Trucks

10 years

General/Instructional Equipment

Welders

Saws

Microscopes

X-ray Machines

Oscilloscopes

7 years

Library Reference Material

Books

CD ROMs

Videos

Microfiche

 

7 years

Vehicles

Cars

Trucks

Motorcycles

Snowmobiles

7 years

Computer Equipment

Computers

Modems

Printers

Monitors

5 years

Specialized Equipment -  “particularly electronic equipment that would tend to have a shorter life than computer equipment”

 

 

Software

 

3 years

 

Office Equipment & A/V

Includes electronic office and video equipment

Faxes

Copiers

VCRs

Televisions

5 years

Leasehold Improvements “Major projects ($5,000 and above)” that extend the life or increase the value of the leased asset.

 

Life of Lease

 

2013.2


The acquisition, use, and disposal of all personal property must be in accordance with the College’s Property Management System.  The term “personal property” denotes all property except real property, which is generally described as non-consumable equipment with an acquisition cost of $500 or more, or which is sensitive in nature (i.e. easily converted to cash or personal use).

Bay de Noc Community College is responsible for a management system that ensures physical control procedures, maintenance, surveillance, optimum use, and disposal of all personal property in the custody/ownership of the College.

Two primary property management responsibilities are the maintenance of property management records and the preparation of property reports for use by federal & state agencies, as well as College personnel.

The entire property management manual can be viewed on the College’s website, Faculty & Staff, Physical Plant, Shipping & Receiving.

Approval Dates:


Policy Origin Date:
05/19/2004

Procedure Origin Date:
05/19/2004

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